A survey has revealed that the biggest fear for young people today in the UK is debt.

48 % of the 1,220 people, with ages ranging from 16 to 25, said that debt was the thing that made them most anxious about for the future.

The Youth Future Fears UK survey was commissioned by Community Service Volunteers and conducted as part of the Agents4Change campaign, which has received £1m of public and private sector money to deliver a project that encourages young people into community volunteering. The campaign is supported by Tesco and the youth volunteering charity v.

Youthinformation.com, a National Youth Agency's resource for young people and all those working with them, highlighted how:

Young people are particularly vulnerable to debt; unemployment and low pay is a major factor as well as tempting offers such as 0% finance on goods purchased, and discounts offered by storecards.

Debt is also a major problem for students in further and higher education. They can now expect to build up debts during the time they study and repay them once they leave. According to the National Union of Students (NUS) student loans now make up one half of a student's living costs.

A joint GMB/NUS survey called Students at Work found 40% of students are employed during term time. Of these, four out of ten are employed for between 12.5-20 hours a week. Two thirds of students interviewed said that working adversely affected their studies; 30% miss lectures to work and 20% missed course deadlines and failed to submit academic work due to their employment.

Obsessive gambling can quickly lead to debt. Most young people with gambling problems play fruit machines although more recently lottery scratch cards have become popular.

Debt is increasingly recognised as problem for young people. If young people are experience debt problems the advice is to seek help as soon as possible before the situation gets any worse. Many Citizens Advice Bureaux and benefits advice centres employ debt counsellors and money advisers. The National Debtline offers range of local services along with having advisors on hand to speak to about any debt related problems young people may have.

A draft report released last October by youth charity Rainer and YouGov revealed that nearly 80% of young people, four out five, have been in debt at some point.

 A third of young people had owed more than £5,000 and one in five had owed more than £10,000.

The research shows that these debts are not confined to student loans.  Young people from across the spectrum are affected, with credit cards (32%) and overdrafts (38%) heavily used, alongside loans (49%).  For young people reliant on benefits, long delays and the complexities of the system were a major cause of debt.

These debts are leading to crisis point for one in five young people who, after paying bills and debt repayments, are left £50 a month or less to cover food and other expenses.  One in ten young people are left with nothing.
 
It is those young people who are vulnerable in other areas of their lives who are hit the hardest.  Eighty five per cent of homeless young people are in debt and Rainer's research showed that the young people it supported are left with an average of just five pounds per week.

Rainer Chief Executive Joyce Moseley said:
"Young people tell us that being in debt is now just part of the norm, but it can quickly become a millstone around their neck.  In addition to the stress it can cause, there is strong evidence that debt can prevent young people from living independently or taking part in education or even eating healthily."

Rainer is calling for jargon-free practical financial advice to be available to all young people, with particular support targeted at vulnerable groups such as homeless young people or care leavers.  The charity is also calling for reform of the benefit system to remove delays and provide better advice to those who are in financial trouble.